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In my course we used the p.c-of-product sales process for making go the Pro Forma Harmony Sheet, the place all spontaneous accounts (and from time to time PP&E) differ to be a percentage of gross sales. Non-spontaneous accounts don’t vary, therefore you’ll should estimate Retained Earnings amongst the following approaches:
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That means we are able to about his set the proper facet of the very first equation equivalent to the appropriate facet of the other to obtain:
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